Exam 4: Evaluating a Firms Financial Performance

Which of the following ratios would be the most useful to assess the risk associated with a firm being able to pay off its short-term line of credit?

The current ratio of a firm would be decreased by which of the following?

Please refer to Table 4-7 for the following question. Table 4-7 Hokie Corporation Comparative Balance Sheet For the Years Ending December 31,2009 and 2010 (Millions of Dollars) Hokie had net income of $28 million for 2010 and paid total cash dividends of $20 million to their common stockholders. -Beverly Corp.had total sales of $1,200,000 in 2010 (80 percent of its sales are credit).The company's gross profit margin is 25 percent,its ending inventory is $150,000,and its accounts receivable balance is $90,000.What additional amount of cash could the firm have generated if it had increased its inventory turnover ratio to 9.0 and reduced its average collection period to 28.21875 days?

Benkart Corporation has sales of $5,000,000,net income of $800,000,total assets of $2,000,000,and 100,000 shares of common stock outstanding.If Benkart's P/E ratio is 12,what is the company's current stock price?

Financial ratios are used by managers inside the company and by lenders,credit-rating agencies,and investors outside of the company.

Company A has a higher days sales outstanding ratio than Company B.Therefore

For a retailer with inventory to sell,the acid-test ratio will be